Things are not getting better. Trends for smaller houses are flat. Older wealthy individuals and their families are crowding out younger working families.”

Amy Mooney

Among the most compelling arguments in favor of affordable housing is maintaining the socio-economic diversity which has defined this town from its settlement.”

Patrick Bowen

For many of the 100 or so attendees who packed the town’s community center on Saturday to learn more about Little Compton’s housing crisis, the message they received was familiar but jolting: the town’s working middle class is shrinking and may disappear altogether because suitable, affordable housing in this community is virtually non-existent.

The gathering was organized by The Commons Foundation, a newly formed, non-profit group dedicated to increasing the stock of community housing in town and making home ownership attainable to more families. 

The foundation’s organizers invited representatives of the town council, planning board, Little Compton Housing Trust, Little Compton Agricultural Conservancy Trust, and the United Congregational Church to join them on Saturday to make brief presentations focused on housing. The various presentations, which took up the first hour of the meeting, were followed by questions from the audience and a wide-ranging discussion highlighting some of the town’s history, its current housing affordability crisis, and potential future solutions.

The numbers reveal the harsh reality. A foundation handout shows Little Compton’s median single-family home price in 2019 was $530,000, versus $900,000 in 2023 – a 69.8 percent increase.

In referencing these numbers, Amy Mooney, a vice president and director of the foundation who also serves as director of the Little Compton Community Center, described how dramatically the pandemic impacted communities such as Little Compton. Wealthy individuals began to relocate to this community, which resulted in skyrocketing real estate values. At the same time, the cost of living increased, but wages did not follow suit.

Mooney described Little Compton as a study in contrasts: “On one side of town, a senior’s mobile home is condemned, while simultaneously on the other side of town, an elegant new home with an oceanfront view is being built. A young family narrowly avoids leaving town, only because of the kindness of a friend. Seniors looking to downsize but having nowhere to go – facing the reality of having to leave a place that they’ve called home for decades.”

A summer camp with no employees

Mooney described how, as director of the community center, she was faced with the possibility of having to cancel summer camp because she couldn’t find enough staff.

“As I faced the loss of our summer camp, I realized that my own family would need that camp in a few years. Without summer camp for my children, I can’t work. Without work, I can’t afford to live here.”

Citing data from the tax assessor’s office, Mooney said Little Compton has stopped building houses for working class residents. In recent years, less than 10 percent of permits issued were for smaller houses that young families might be able to afford.

“Things are not getting better. Trends for smaller houses are flat. Older wealthy individuals and their families are crowding out younger working families.”

Mooney said she decided to join the all-volunteer board at The Commons Foundation when she learned the group intended to tackle the problem she was most worried about – providing young working families the housing they need.

Cost-burdened households

In his presentation on Saturday, Patrick Bowen, president of Little Compton Housing Trust, described the organization’s housing advocacy work and its involvement in implementing the town’s affordable housing plan. The trust, which receives funding through town budget appropriations and grants, has acquired two properties in town for use as affordable housing.

Citing data from HousingWorksRI, Bowen noted that more than 400 of Little Compton’s 1,600 households are “cost-burdened” — meaning 30 percent or more of the occupants’ income goes to housing costs.

“The pressures of land conservation and high end seasonal residential development continue to increase the cost and value of all property in town, resulting in fewer opportunities for individuals and families to work here,” said Bowen. “Among the most compelling arguments in favor of affordable housing is maintaining the socio-economic diversity which has defined this town from its settlement.”

The game plan

The Commons Foundation’s primary objective is to raise several million dollars from donors and use those funds to develop new homes beginning in 2025, Mooney said. 

The organizers plan to achieve their goals through the creation of two funds. The first will provide low-cost sources of capital, raised by sponsors, to acquire land for housing. When repaid by borrowers, the loaned capital would be returned to sponsors or rolled into a new transaction, at the sponsors’ option.

The second fund will be used to support community housing and will cover the difference between acquisition/construction costs and selling price, or to help with down payments. The source of the funds will be tax deductible donations from Little Compton residents and neighbors.

Asked to define the term community housing, board chairman Joe Azrack said it refers to housing for moderate-and-middle income households who work and would like to live in Little Compton.

“It is possible that some of the housing we fund will also have some form of Rhode Island Housing state funding, but we do not expect that to be the case for most of our housing projects, nor are we dependent on that state funding,” he said.

The foundation received accolades from many of the presenters at Saturday’s meeting. Town Council member Patrick McHugh extended congratulations to the organizers.

“These people, who are going to dip into their pockets, that’s a big thing. Three or four years ago, no one was even talking about this. I’m very hopeful that we are on the right track.”